Vista Outdoor (NYSE: VSTO) reported Q4 EPS of $0.11, $0.05 better than the analyst estimate of $0.06. Revenue for the quarter came in at $426 million versus the consensus estimate of $454.89 million.

"Our results exceeded our expectations for the fourth quarter and full fiscal year," said Chris Metz, Vista Outdoor Chief Executive Officer. "In this challenging environment brought on by the COVID-19 pandemic, we delivered strong financial performance, met our revenue expectations, and exceeded our expectations for adjusted EPS and free cash flow. Overall, the impact of the COVID-19 pandemic on our operations in the fourth quarter was minimal. We experienced stronger than expected demand in many of our categories, including commercial ammunition, bicycle helmets and accessories, and outdoor cooking. Looking forward, we believe that our stronger operating fundamentals, improved balance sheet and financial flexibility will help us respond to this uncertain environment and seize opportunities where they arise."

"As many of our operations are designated as essential by the US government, the health and safety of our employees remains our first and foremost focus. I would like to thank every Vista Outdoor employee for their incredible efforts during these unprecedented times and for their commitment to a founder's mentality and to Vista Outdoor's mission to bring the world outside. Our teams have worked tirelessly to safeguard the health of our employees, support customer demand, and deliver on our strategic priorities. Vista Outdoor has deep experience navigating, adapting to and overcoming challenges," said Metz.

Fiscal Year 2020In the second quarter of FY20, Vista Outdoor completed the sale of its firearms business for $170 million. The completion of this divestiture was a critical step in the Company's strategic portfolio reshaping and allowed the Company to further paydown debt and free up capital to invest in product categories where the Company believes it can be a market leader.

The Company modified its segment reporting to better reflect its strategic focus. The Company's two new reportable segments are Shooting Sports and Outdoor Products. The Shooting Sports reporting segment consists of the Company's Ammunition and Hunting and Shooting Accessories business units, which include the Company's Federal, CCI, Speer ammunition brands, as well as Bushnell Optics, Primos, BLACKHAWK! and Eagle hunting and shooting-related brands, among others. The Outdoor Products reporting segment consists of the Company's Action Sports and Outdoor Recreation business units, which include the Company's Bell/Giro, CamelBak, Camp Chef and Bushnell Golf brands, among others. The Company's reported fourth quarter and full year FY20 results reflect these two new reporting segments. To assist in the analysis and understanding of the new segment structure, the Company is providing selected recast financial data for the fourth quarter and full year of 2020, 2019 and 2018 in its earnings presentation slides, available on the Investor Relations section of the Company's website, reflecting the new reporting segments. These changes have no impact on the Company's previously reported consolidated balance sheet, statement of income, or cash flows.

GUIDANCE:

Vista Outdoor sees Q1 2021 EPS of ($0.05)-$0.00, versus the consensus of $0.07. Vista Outdoor sees Q1 2021 revenue of $370-400 million, versus the consensus of $470.9 million.

"As we begin fiscal year 2021, we are closely monitoring consumer purchasing behavior due to the uncertainty caused by COVID-19. At this time, we believe it is prudent to set expectations only for the first quarter of fiscal year 2021," said Metz. "We will revisit guidance for the remainder of the year at a later date. We believe that the profitability improvements we have undertaken over the past two years, combined with our significantly reduced leverage and more flexible balance sheet, put us in a strong position going into fiscal year 2021. The solid foundation that we have built will allow us to navigate these uncertain times while continuing to generate profitable revenue and provide our core consumers with the innovative products that they depend on for their outdoor pursuits."

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